Refinancing: Which Program is for You?
When you are overwhelmed with all the choices, it may seem as if there are even more loan programs than borrowers! Call us at 754-202-4376 and we will match you with the refinance loan program that is ideal for your needs. In the interest of looking at your options, you'll need to consider what you want to achieve with your refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the right option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even as interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is especially a wise choice if you don't think you'll be selling your home within the next five years or so. However, an ARM with a low intitial payment may be a wiser way to lower your monthly payments if you expect to move in the near future.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? Your home needs renovating; your daughter has been accepted to college and needs tuition; or you are taking your family on a cruise. With this in mind, you'll want to get a loan higher than the balance remaining of your current mortgage loan.Then you'll need However, if your interest rate is high now and you have held it for a long time, you could be able to reach your goals without making your monthly payments higher.
Do you have other debt, perhaps with a higher interest rate, that you need to consolidate? If you hold some higher interest debts (such as credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have enough home equity.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while beefing up your equity faster? Then, you'll want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year loan. Your monthly payments will probably be more than they were with your longer term loan, but the pay-off is: you will pay substantially less interest and can build up equity more quickly. Conversely, if your current long-term mortgage loan has a small balance remaining, and was closed a while ago, you could be able to make the move without paying more each month. To help you determine your options and the multiple benefits in refinancing, please contact us at 754-202-4376. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call at 754-202-4376.